Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $3,413 and $5,079 for the year ended December 31, 2020 and 2019, respectively. Short-term operating lease costs was $244 and $160 for the years ended December 31, 2020 and 2019, respectively. Sublease income was $134 and $132 for the years ended December 31, 2020 and 2019, respectively. Maturities of lease liabilities as of December 31, 2020 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

2021	$	4,116
2022	2,076
2023	634
2024	418
2025 and thereafter	295
Total undiscounted lease payments	$	7,539
Less amount representing interest	$	(509)
Present value of operating lease liabilities	$	7,030
Less current installments of obligation under current-operating lease liabilities	$	3,826
Obligations under long-term operating lease liabilities, excluding current installments	$	3,204
Weighted-average remaining lease term - operating leases (years)	2.38
Weighted-average discount rate - operating leases	5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of December 31, 2020, the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,284, respectively. The obligations under financing leases are stated at the present value of minimum lease payments.

    The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $438 and $439 for the years ended December 31, 2020 and 2019, respectively.

The future undiscounted lease payments under this financing lease as of December 31, 2020 are:

2021	$	624
2022	624
2023	45
Total undiscounted lease payments	$	1,293
Less amount representing interest	$	(9)
Present value of financing lease liabilities	$	1,284
Less current installments of obligation under accrued other	$	618
Obligations under other long-term liabilities, excluding current installments	$	666
Weighted-average remaining lease term - finance leases (years)	2.17
Weighted-average discount rate - finance leases	1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,353 as of December 31, 2020 and the non-current portion of the net investment in these leases was $7,774 as of December 31, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $859 and $699 during the year ended December 31, 2020 and 2019, respectively.

The future undiscounted cash flows from these leases as of December 31, 2020 are:

2021	$	5,152
2022	3,417
2023	2,796
2024	1,935
2025	590
Total undiscounted cash flows	$	13,890
Present value of lease payments	$	12,127
Difference between undiscounted cash flows and discounted cash flows	$	1,763

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $3,413 and $5,079 for the year ended December 31, 2020 and 2019, respectively. Short-term operating lease costs was $244 and $160 for the years ended December 31, 2020 and 2019, respectively. Sublease income was $134 and $132 for the years ended December 31, 2020 and 2019, respectively. Maturities of lease liabilities as of December 31, 2020 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

2021	$	4,116
2022	2,076
2023	634
2024	418
2025 and thereafter	295
Total undiscounted lease payments	$	7,539
Less amount representing interest	$	(509)
Present value of operating lease liabilities	$	7,030
Less current installments of obligation under current-operating lease liabilities	$	3,826
Obligations under long-term operating lease liabilities, excluding current installments	$	3,204
Weighted-average remaining lease term - operating leases (years)	2.38
Weighted-average discount rate - operating leases	5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of December 31, 2020, the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,284, respectively. The obligations under financing leases are stated at the present value of minimum lease payments.

    The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $438 and $439 for the years ended December 31, 2020 and 2019, respectively.

The future undiscounted lease payments under this financing lease as of December 31, 2020 are:

2021	$	624
2022	624
2023	45
Total undiscounted lease payments	$	1,293
Less amount representing interest	$	(9)
Present value of financing lease liabilities	$	1,284
Less current installments of obligation under accrued other	$	618
Obligations under other long-term liabilities, excluding current installments	$	666
Weighted-average remaining lease term - finance leases (years)	2.17
Weighted-average discount rate - finance leases	1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,353 as of December 31, 2020 and the non-current portion of the net investment in these leases was $7,774 as of December 31, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $859 and $699 during the year ended December 31, 2020 and 2019, respectively.

The future undiscounted cash flows from these leases as of December 31, 2020 are:

2021	$	5,152
2022	3,417
2023	2,796
2024	1,935
2025	590
Total undiscounted cash flows	$	13,890
Present value of lease payments	$	12,127
Difference between undiscounted cash flows and discounted cash flows	$	1,763

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $3,413 and $5,079 for the year ended December 31, 2020 and 2019, respectively. Short-term operating lease costs was $244 and $160 for the years ended December 31, 2020 and 2019, respectively. Sublease income was $134 and $132 for the years ended December 31, 2020 and 2019, respectively. Maturities of lease liabilities as of December 31, 2020 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

2021	$	4,116
2022	2,076
2023	634
2024	418
2025 and thereafter	295
Total undiscounted lease payments	$	7,539
Less amount representing interest	$	(509)
Present value of operating lease liabilities	$	7,030
Less current installments of obligation under current-operating lease liabilities	$	3,826
Obligations under long-term operating lease liabilities, excluding current installments	$	3,204
Weighted-average remaining lease term - operating leases (years)	2.38
Weighted-average discount rate - operating leases	5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of December 31, 2020, the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,284, respectively. The obligations under financing leases are stated at the present value of minimum lease payments.

    The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $438 and $439 for the years ended December 31, 2020 and 2019, respectively.

The future undiscounted lease payments under this financing lease as of December 31, 2020 are:

2021	$	624
2022	624
2023	45
Total undiscounted lease payments	$	1,293
Less amount representing interest	$	(9)
Present value of financing lease liabilities	$	1,284
Less current installments of obligation under accrued other	$	618
Obligations under other long-term liabilities, excluding current installments	$	666
Weighted-average remaining lease term - finance leases (years)	2.17
Weighted-average discount rate - finance leases	1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,353 as of December 31, 2020 and the non-current portion of the net investment in these leases was $7,774 as of December 31, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $859 and $699 during the year ended December 31, 2020 and 2019, respectively.

The future undiscounted cash flows from these leases as of December 31, 2020 are:

2021	$	5,152
2022	3,417
2023	2,796
2024	1,935
2025	590
Total undiscounted cash flows	$	13,890
Present value of lease payments	$	12,127
Difference between undiscounted cash flows and discounted cash flows	$	1,763